Hunt Real Estate Capital provided a loan in the amount of $5 million to refinance an affordable multifamily property located in Salinas, California.
Gabilan Hills Townhomes is a 100-unit affordable multifamily property that was built in 1996. The property offers 66 two-bedroom units and 34 three-bedroom units in 17 townhouse buildings.
The sponsor, Community Housing Improvement Systems and Planning Association (CHISPA), originally developed the property with LIHTC. The loan is a 10-year fixed-rate facility that will amortize over 30 years.
Gabilan Hills has an in-place Low Income Housing Regulatory Agreement, which mandates that 40 of the 100 units be rented to individuals and families whose income does not exceed 50% of the Area Median Income (AMI). The remaining 60 units are rented by families whose income does not exceed 60% AMI.
“The sponsor on this deal is the largest private, nonprofit housing developer based in Monterey County,” commented Aaron Wooler, Managing Director at Hunt Real Estate Capital. “Since its incorporation in 1980, CHISPA has built and renovated 2,268 single-family homes and apartments for low- and moderate-income residents in Monterey, San Benito, and Santa Cruz counties.”
Gabilan Hills opened in May 1996 and the initial tax credit period of 15 years has since expired. However, the subject is still within the 55-year extended use period, which does not expire until 2051.
The Salinas Submarket where this property is located is defined by its agricultural economy and more affordable rents. The metro has structurally tight vacancies, and new construction has been virtually nonexistent this cycle outside of smaller projects.
“We were pleased to provide the financing for this quality sponsor to provide much needed affordable housing for the local community,” added Wooler.
Gabilan Hills is a gated community that provides four separate play structures and a basketball court, and has plenty of open space for children in the community to play. Across the street from the property is La Paz Middle School and Cesar E. Chavez Elementary School. Just south of the property is Alisal High School, providing all the children of Gabilan Hills an easy walking distance to school.